Teledyne Technologies Incorporated (NYSE:TDY) today announced that it
has reduced its outlook for third quarter and full year 2015 diluted
earnings per share. The company’s management now believes that third
quarter 2015 GAAP earnings per diluted share will be in the range of
approximately $1.30 to $1.33 and full year 2015 earnings per diluted
share will be in the range of approximately $5.10 to $5.17 compared to
the prior outlook of $1.45 to $1.48 and $5.60 to $5.65, respectively.
“Sales of marine and electronic test and measurement instrumentation
declined from last year and were lower than previously forecasted,” said
Robert Mehrabian, Chairman, President and Chief Executive Officer.
“While sales to offshore energy markets generally declined as expected
in the third quarter, orders have slowed in recent weeks. Nevertheless,
sales of aerospace and defense electronics, environmental
instrumentation and commercial digital imaging systems collectively
The strong U.S. dollar and challenging capital spending environment
impacted demand from emerging markets, resulting in lost sales in the
third quarter. Furthermore, due to lower international sales, the
company’s tax rate increased.
Teledyne continues to take aggressive cost reduction measures, and the
company’s full year 2015 outlook includes estimated pretax severance
charges totaling approximately $8.0 million.
The company’s effective tax rate for full year 2015 is now expected to
be 30.8%, before discrete items, compared to a prior outlook of 29.5%,
resulting in approximately $2.5 million of additional tax expense in the
third quarter. Finally, the company expects that third quarter earnings
will include discrete tax benefits of approximately $7.3 million.
A press release with the full third quarter financial results is
expected to be issued before the opening of the New York Stock Exchange
on Thursday, October 29, 2015.
Teledyne Technologies is a leading provider of sophisticated
instrumentation, digital imaging products and software, aerospace and
defense electronics, and engineered systems. Teledyne Technologies’
operations are primarily located in the United States, Canada, the
United Kingdom, and Western and Northern Europe. For more information,
visit Teledyne Technologies’ website at www.teledyne.com.
Forward-Looking Information Cautionary Notice
This press release contains forward-looking statements, as defined in
the Private Securities Litigation Reform Act of 1995, relating to
earnings, growth opportunities, acquisitions, product sales, capital
expenditures, pension matters, stock option compensation expense, stock
repurchases, interest expense, taxes, exchange rate fluctuations, cost
reductions and strategic plans. Forward-looking statements are generally
accompanied by words such as “estimate”, “project”, “predict”,
“believes” or “expect”, that convey the uncertainty of future events or
outcomes. All statements made in this press release that are not
historical in nature should be considered forward looking.
Actual results could differ materially from these forward-looking
statements. Many factors could change the anticipated results,
including: disruptions in the global economy; changes in demand for
products sold to the defense electronics, instrumentation, digital
imaging, energy exploration and production, commercial aviation,
semiconductor and communications markets; funding, continuation and
award of government programs; cuts to defense spending resulting from
existing and future deficit reduction measures; and threats to the
security of our confidential and proprietary information, including
cyber security threats. Lower oil and natural gas prices, as well as
instability in the Middle East or other oil producing regions, and new
regulations or restrictions relating to energy production, including
with respect to hydraulic fracturing, could negatively affect the
company’s businesses that supply the oil and gas industry. Increasing
fuel costs could negatively affect the markets of our commercial
aviation businesses. In addition, financial market fluctuations affect
the value of the company’s pension assets.
Changes in the policies of U.S. and foreign governments, including
economic sanctions, could result, over time, in reductions or
realignment in defense or other government spending and further changes
in programs in which the company participates.
While the company’s growth strategy includes possible acquisitions, we
cannot provide any assurance as to when, if or on what terms any
acquisitions will be made. Acquisitions involve various inherent risks,
such as, among others, our ability to integrate acquired businesses,
retain customers and achieve identified financial and operating
synergies. There are additional risks associated with acquiring, owning
and operating businesses internationally, including those arising from
U.S. and foreign policy changes and exchange rate fluctuations.
While the company believes its internal and disclosure control systems
are effective, there are inherent limitations in all control systems,
and misstatements due to error or fraud may occur and may not be
Readers are urged to read the company’s periodic reports filed with the
Securities and Exchange Commission (“SEC”) for a more complete
description of the company, its businesses, its strategies and the
various risks that the company faces. Various risks are identified in
Teledyne’s 2014 Annual Report on Form 10-K and subsequent Quarterly
Reports on Form 10-Q. The company assumes no duty to publicly update or
revise any forward-looking statements, whether as a result of new
information or otherwise.
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